12 U.S.C. § 356 — Purchase of commercial paper from mem-

Page 133 TITLE 12—BANKS AND BANKING § 356 market or directly from or to the United States bonds, notes, or other obligations which were direct obliga- tions of the United States or which were fully guaran- teed by the United States and, after Apr. 30, 1979, had allowed such obligations to be purchased but only in the open market. Pub. L. 96–18, § 3(b), inserted provision that notwith- standing any other provision of this chapter, any bonds, notes, or other obligations which are direct obli- gations of the United States or which are fully guaran- teed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market. Par. (2). Pub. L. 96–18, §§ 1(b), 3(a), temporarily sub- stituted ‘‘the United States or any agency of the United States, and to lend, under the direction and reg- ulations of the Federal Open Market Committee, any such obligation to the Secretary of the Treasury’’ for ‘‘any agency of the United States’’. See Effective and Termination Dates of 1979 Amendment note set out below. Pars. (3), (4). Pub. L. 96–18, §§ 1(c), 3(a), temporarily added pars. (3) and (4). See Effective and Termination Dates of 1979 Amendment note set out below. 1978—Par. (1). Pub. L. 95–534 substituted ‘‘May 1, 1979’’ for ‘‘May 1, 1978’’ and ‘‘April 30, 1979’’ for ‘‘April 30, 1978’’. 1977—Par. (1). Pub. L. 95–154 substituted ‘‘May 1, 1978’’ for ‘‘October 1, 1977’’ and ‘‘April 30, 1978’’ for ‘‘Sep- tember 30, 1977’’. Pub. L. 95–128 substituted ‘‘October 1, 1977’’ for ‘‘No- vember 1, 1978’’ and ‘‘September 30, 1977’’ for ‘‘October 31, 1978’’. Pub. L. 95–22 substituted ‘‘November 1, 1978’’ for ‘‘No- vember 1, 1976’’ and ‘‘October 31, 1978’’ for ‘‘October 31, 1976’’. 1975—Par. (1). Pub. L. 94–125 substituted ‘‘November 1, 1976’’ for ‘‘November 1, 1975’’ and ‘‘October 31, 1976’’ for ‘‘October 31, 1975’’. 1974—Par. (1). Pub. L. 93–495 substituted ‘‘November 1, 1975 for ‘‘November 1, 1973’’ and ‘‘October 31, 1975’’ for ‘‘October 31, 1973’’. 1973—Par. (1). Pub. L. 93–93 substituted ‘‘November 1, 1973’’ for ‘‘July 1, 1973’’ and ‘‘October 31, 1973’’ for ‘‘June 30, 1973’’. 1971—Par. (1). Pub. L. 92–45 substituted ‘‘July 1, 1973’’ for ‘‘July 1, 1971’’ and ‘‘June 30, 1973’’ for ‘‘June 30, 1971’’. 1970—Par. (1). Pub. L. 91–360 substituted ‘‘July 1, 1971’’ for ‘‘July 1, 1970’’ and ‘‘June 30, 1971’’ for ‘‘June 30, 1970’’. 1968—Par. (1). Pub. L. 90–300 substituted ‘‘July 1, 1970’’ for ‘‘July 1, 1968’’ and ‘‘June 30, 1970’’ for ‘‘June 30, 1968’’. 1966—Pub. L. 89–597 designated existing provisions as par. (1) and added par. (2). Pub. L. 89–484 substituted ‘‘July 1, 1968’’ for ‘‘July 1, 1966’’ and ‘‘June 30, 1968’’ for ‘‘June 30, 1966’’. 1964—Pub. L. 88–344 substituted ‘‘July 1, 1966’’ for ‘‘July 1, 1964’’, and ‘‘June 30, 1966’’ for ‘‘June 30, 1964’’. 1962—Pub. L. 87–506 substituted ‘‘July 1, 1964’’ for ‘‘July 1, 1962’’ and ‘‘June 30, 1964’’ for ‘‘June 30, 1962.’’ 1961—Pub. L. 87–353 struck out provision authorizing every Federal reserve bank to buy and sell, at home or abroad, bonds of the Federal Farm Mortgage Corpora- tion having maturities from date of purchase of not ex- ceeding six months. 1960—Pub. L. 86–567 substituted ‘‘July 1, 1962’’ for ‘‘July 1, 1960’’ and ‘‘June 30, 1962’’ for ‘‘June 30, 1960’’. 1958—Pub. L. 85–476 substituted ‘‘July 1, 1960’’ for ‘‘July 1, 1958’’ and ‘‘June 30, 1960’’ for ‘‘June 30, 1958’’. 1956—Act June 25, 1956, substituted ‘‘July 1, 1958’’ for ‘‘July 1, 1956’’ and ‘‘June 30, 1958’’ for ‘‘June 30, 1958’’. 1954—Act June 29, 1954, substituted ‘‘July 1, 1956’’ for ‘‘July 1, 1954’’ and ‘‘June 30, 1956’’ for ‘‘June 30, 1954’’. 1952—Act June 23, 1952, substituted ‘‘July 1, 1954’’ for ‘‘July 1, 1952’’ and ‘‘June 30, 1954’’ for ‘‘June 30, 1952’’. 1950—Act June 30, 1950, substituted ‘‘July 1, 1952’’ for ‘‘July 1, 1950’’ and ‘‘June 30, 1952’’ for ‘‘June 30, 1950’’. 1947—Act Apr. 28, 1947, substituted proviso which al- lows the Federal Reserve banks to buy and sell either in the open market or directly from or to the United States any bonds, notes, or other obligations which are direct obligations of the United States or are fully guaranteed by the United States but limits the aggre- gate amount to be held at any one time to $5,000,000,000, and after June 30, 1950 allows such obligation to be pur- chased, but only in the open market for former proviso. 1942—Act Mar. 27, 1942, amended proviso generally. 1935—Act Aug. 23, 1935, § 206(a), inserted proviso. 1934—Act Apr. 27, 1934, authorized purchase and sale of bonds issued under subsec. (c) of [former] section 1463 of this title. Act Jan. 31, 1934, authorized purchase and sale of bonds of Federal Farm Mortgage Corporation. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. EFFECTIVE DATE AND APPLICABILITY OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on first day of sixth month which begins after Mar. 31, 1980, see sec- tion 108 of Pub. L. 96–221, set out as an Effective Date of 1980 Amendment note under section 248 of this title. Pub. L. 96–221, title I, § 105(b)(2), Mar. 31, 1980, 94 Stat. 140, provided that the amendment made by section 105(b)(2) of Pub. L. 96–221 is applicable to 12 U.S.C. 355(1) as such section is in effect on the first day of the sixth month which begins after March 31, 1980, and as it will be in effect on June 1, 1981. EFFECTIVE AND TERMINATION DATES OF 1979 AMENDMENT Pub. L. 96–18, § 3(a), June 8, 1979, 93 Stat. 36, provided that: ‘‘Except for the amendments made by subsection (a) of the first section of this Act [amending par. (1) of this section], and except for the amendment made by subsection (b) of this section [amending par. (1) of this section effective upon the expiration of the two-year period beginning on June 8, 1979], the amendments made by this Act [enacting section 359a of this title and pars. (3) and (4) of this section and amending par. (2) of this section] shall be effective only during the two-year period which begins on the date of enactment of this Act [June 8, 1979]. Upon the expiration of such period, each provision of law amended by this Act [enacting section 359a of this title and amending this section], ex- cept section 14(b)(1) of the Federal Reserve Act [par. (1) of this section], is amended to read as it did imme- diately prior to the enactment of this Act.’’ Pub. L. 96–18, § 3(b), June 8, 1979, 93 Stat. 36, provided that the amendment made by that section is effective ‘‘Upon the expiration of the 2-year period which begins on the date of enactment of this Act [June 8, 1979]’’. EXPIRATION OF 1942 AMENDMENT Amendment of the proviso of this section by act Mar. 27, 1942, remained in force only until the date fixed by section 645 of the former Appendix to Title 50, War and National Defense, after which provisions in force before the amendment again became effective. Before the 1942 amendment, the proviso of this section read: ‘‘Provided, That any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market.’’ § 356. Purchase of commercial paper from mem- ber banks and sale of same Every Federal reserve bank shall have power to purchase from member banks and to sell, with or without its indorsement, bills of ex- Page 134 TITLE 12—BANKS AND BANKING § 357 change arising out of commercial transactions, as hereinbefore defined. (Dec. 23, 1913, ch. 6, § 14(c), 38 Stat. 264.) Editorial Notes CODIFICATION Section is comprised of subsec. (c) of section 14 of act Dec. 23, 1913. For classification to this title of remain- der of section 14, see Codification note under section 353 of this title. § 357. Establishment of rates of discount Every Federal reserve bank shall have power to establish from time to time, subject to review and determination of the Board of Governors of the Federal Reserve System, rates of discount to be charged by the Federal reserve bank for each class of paper, which shall be fixed with a view of accommodating commerce and business, but each such bank shall establish such rates every fourteen days, or oftener if deemed necessary by the Board. (Dec. 23, 1913, ch. 6, § 14(d), 38 Stat. 264; Apr. 13, 1920, ch. 128, 41 Stat. 550; Mar. 4, 1923, ch. 252, title IV, § 407, 42 Stat. 1480; Aug. 23, 1935, ch. 614, title II, §§ 203(a), 206(b), 49 Stat. 704, 706.) Editorial Notes CODIFICATION Section is comprised of subsec. (d) of section 14 of act Dec. 23, 1913. For classification to this title of remain- der of section 14, see Codification note under section 353 of this title. AMENDMENTS 1935—Act Aug. 23, 1935, § 206(b), inserted words at end of section beginning ‘‘but each such’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. § 358. Establishment of accounts for purposes of open-market operations; correspondents and agencies Every Federal reserve bank shall have power to establish accounts with other Federal reserve banks for exchange purposes and, with the con- sent or upon the order and direction of the Board of Governors of the Federal Reserve Sys- tem and under regulations to be prescribed by said Board, to open and maintain accounts in foreign countries, appoint correspondents, and establish agencies in such countries wheresoever it may be deemed best for the purpose of pur- chasing, selling, and collecting bills of ex- change, and to buy and sell, with or without its indorsement, through such correspondents or agencies, bills of exchange (or acceptances) aris- ing out of actual commercial transactions which have not more than ninety days to run, exclu- sive of days of grace, and which bear the signa- ture of two or more responsible parties, and, with the consent of the Board of Governors of the Federal Reserve System, to open and main- tain banking accounts for such foreign cor- respondents or agencies, or for foreign banks or bankers, or for foreign states as defined in sec- tion 632 of this title. Whenever any such account has been opened or agency or correspondent has been appointed by a Federal reserve bank, with the consent of or under the order and direction of the Board of Governors of the Federal Reserve System, any other Federal reserve bank may, with the consent and approval of the Board of Governors of the Federal Reserve System, be permitted to carry on or conduct, through the Federal reserve bank opening such account or appointing such agency or correspondent, any transaction authorized by this section under rules and regulations to be prescribed by the board. (Dec. 23, 1913, ch. 6, § 14(e), 38 Stat. 264; Sept. 7, 1916, ch. 461, 39 Stat. 754; June 21, 1917, ch. 32, § 6, 40 Stat. 235; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Apr. 7, 1941, ch. 43, § 1, 55 Stat. 131.) Editorial Notes CODIFICATION Section is comprised of subsec. (e) of section 14 of act Dec. 23, 1913. For classification to this title of remain- der of section 14, see Codification note under section 353 of this title. AMENDMENTS 1941—Act Apr. 7, 1941, inserted in first sentence ‘‘, or for foreign banks or bankers, or for foreign states as de- fined in section 632 of this title’’ after ‘‘foreign cor- respondents or agencies’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. § 359. Purchase and sale of acceptances of inter- mediate credit banks and agricultural credit corporations Every Federal reserve bank shall have power to purchase and sell in the open market, either from or to domestic banks, firms, corporations, or individuals, acceptances of Federal inter- mediate credit banks and of national agricul- tural credit corporations, whenever the Board of Governors of the Federal Reserve System shall declare that the public interest so requires. (Dec. 23, 1913, ch. 6, § 14(f), as added Mar. 4, 1923, ch. 252, title IV, § 405, 42 Stat. 1480; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is comprised of subsec. (f) of section 14 of act Dec. 23, 1913, as added Mar. 4, 1923. For classification to this title of remainder of section 14, see Codification note under section 353 of this title. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.